Delegate Lopez Helps Pass Legislation to Increase Capital Investments for Small Businesses Throughout the Commonwealth
(Richmond, VA) Legislation passed through the House of Delegates today that would incentivize investment in small businesses in Virginia. The bill would allow for a 10% tax credit on a qualified investment in a small business that is either headquartered or does most of its business in the Commonwealth.
Delegate Lopez is a Chief Co-Patron on the legislation introduced by Delegate Merricks, which is very similar to legislation that Lopez introduced to incentivize microenterprise growth in Virginia, but was not reported from Committee.
“86% of the businesses in Virginia are microenterprise businesses with five or fewer employees,” said Lopez. “According to the Association for Enterprise Opportunity, if just one in three microbusinesses in the U.S. hired one employee, the U.S. would be at full employment.”
Many entrepreneurs and small businesses are struggling to access traditional credit markets such as banks. As a result, they are searching for other resources to find the money to start and grow their businesses.
‘Business owners have an average net worth 2.5 times the net worth of non-business owners,” added Lopez. “The gap widens to 4 times the net worth for Latino business owners and 7.5 times the net worth for African American business owners. Giving low income Virginians a chance to start their own businesses can help them rise from poverty and have a chance to achieve the American dream.”
This legislation will now go to the State Senate for consideration. It has the support of the Governor’s office and was introduced as a part of the biennial budget.
###Contact: Jason Stanford804.698.1049DelALopez@house.virginia.gov